The Magnificent Seven stocks make up about a third of the market cap for the S&P 500. Meta, Microsoft, Alphabet are all heavily invested in AI, and NVidia makes about half of their sales to three customers buying graphics cards for AI. It will be bad when the bubble bursts, but bubbles need to burst. It isn’t sustainable for companies to be spending hundreds of billion dollars on linear algebra machines with no real pathway to profitability.
The Magnificent Seven stocks make up about a third of the market cap for the S&P 500. Meta, Microsoft, Alphabet are all heavily invested in AI, and NVidia makes about half of their sales to three customers buying graphics cards for AI. It will be bad when the bubble bursts, but bubbles need to burst. It isn’t sustainable for companies to be spending hundreds of billion dollars on linear algebra machines with no real pathway to profitability.
Wait you mean my CEO can’t lay me off this year and replace me with AI after all? Quelle surprise shocked Pikachu face